quiz_10-11_chap1-chap3_exam_paper_and_answer

quiz_10-11_chap1-chap3_exam_paper_and_answer - 10-11 QUIZ 1...

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股股股股股股股 10-11 股股股股 QUIZ 1 chap 1-3 Student: ___________________________________________________________________________ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 1. Real assets in the economy include all but which one of the following? A. Land B. Buildings C. Consumer durables D. Common stock 2. ____ is not a derivative security. A. A share of common stock B. A call option C. A futures contract D. All of the above are derivative securities. 3. __________ are examples of financial intermediaries. A. Commercial banks B. Insurance companies C. Investment companies D. All of the above are financial intermediaries 4. Asset allocation refers to the _________. A. allocation of the investment portfolio across broad asset classes B. analysis of the value of securities C. choice of specific assets within each asset class D. none of the answers define asset allocation 5. __________ are real assets. A. Bonds B. Production equipment C. Stocks D. Commercial paper 6. __________ portfolio construction starts with selecting attractively priced securities. A. Bottom-up B. Top-down C. Upside-down D. Side-to-side 7. A __________ represents an ownership share in a corporation. A. call option B. common stock C. fixed-income security D. preferred stock 8. The value of a derivative security _________. A. depends on the value of other related security B. affects the value of a related security C. is unrelated to the value of a related security D. can only be integrated by calculus professors 9. __________ portfolio management calls for holding diversified portfolios without spending effort or resources attempting to improve investment performance through security analysis. A. Active B. Momentum C. Passive D. Market timing 10. Financial intermediaries exist because small investors cannot efficiently _________. A. diversify their portfolios B. gather information C. monitor their portfolios D. all of the answers provide reasons why 11. Firms that specialize in helping companies raise capital by selling securities to the public are called _____. A. pension funds B. investment banks C. savings banks D. REITs 12. In securities markets, there should be a risk-return trade-off with higher-risk assets having _________ expected returns than lower-risk assets. A. higher B. lower C. the same D. Can't tell from the information given 13. __________ are an indirect way U.S. investors can invest in foreign companies. A. ADRs B. IRAs C. SDRs D. CPCs 14. Security selection refers to _________. A. choosing specific securities within each asset-class B. deciding how much to invest in each asset-class C. deciding how much to invest in the market portfolio versus the riskless asset D. deciding how much to hedge 15. __________ portfolio construction starts with asset allocation. A. Bottom-up
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This note was uploaded on 02/22/2012 for the course FINA 3480 taught by Professor Moore during the Spring '11 term at Toledo.

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quiz_10-11_chap1-chap3_exam_paper_and_answer - 10-11 QUIZ 1...

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